Possible market entry of a firm with an additive manufacturing technology

R.F. Hartl, Peter Kort

Research output: Contribution to journalArticleScientificpeer-review

Abstract

One of the principle characteristics of additive manufacturing is that customers get access to their own design, i.e., they need not choose from a small number of standard products. The paper considers a framework where an incumbent with a standard technology produces a limited number of standard products, and faces a potential entrant with an additive manufacturing technology. We find that three different outcomes are possible: the incumbent accommodates entry while producing just one product, blockades/deters entry, or it has to leave the market due to too heavy competition from the entrant. We give conditions under which each of these outcomes will occur.
Original languageEnglish
Pages (from-to)190-199
JournalInternational Journal of Production Economics
Volume194
DOIs
Publication statusPublished - Dec 2017

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Keywords

  • Market entry game
  • Entry deterrence
  • Entry accommodation
  • Hotelling line
  • Additive manufacturing

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